The Fed is standing in its own way and is not taking meaningful enough steps to boost the economy, Bill Fleckenstein tells King World News in an interview. “Bernanke has taken a half-step towards doing something aggressive,” he said. “The reality is the Fed’s optimism is misplaced because the Fed doesn’t understand that the Fed is the problem.”
From the interview:
So Bernanke has taken a half-step towards doing something aggressive. The Fed has extended Operation Twist and left the door open for more. Maybe they didn’t do more because they are hoping things are going to get better here economically or because they are waiting to see what happens in Europe and they want to save some bullets.
If you think they are saving some bullets, that would mean they might be smart enough to plan in advance, which they really don’t seem to be able to do. What’s happened is they were wrong in their assessment of the economy once again. They thought it was getting better. It wasn’t…